DraftKings Investor Day Presentation Deck
iGaming is tracking to be at least a $40B market in the U.S. at 100% legalization
Estimated U.S. Online iGaming Gross Revenue
($ in millions)
$123
NJ 2014
25% CAGR (2014A - 2018A)
●
$149
NJ 2015
$197
NJ 2016
$246
NJ 2017
DKNG entered the NJ
iGaming market in late
December 2018
+ 62%
$299
NJ 2018
$483
NJ 2019
+ 101%
$970
$43B
Hi
NJ 2020
Implied U.S. Market
(Population Method) (¹)
$40B
Implied U.S. Market
(GDP Method) (2)
• NJ iGaming was nearly $1B industry in 2020; growth has accelerated since the introduction of OSB in August 2018
Based on an extrapolation of 2020 NJ iGaming market, the U.S. opportunity is $37B in Gross Revenue at 100% legalization ($141 Gross Revenue per adult)
Assuming growth of 5% per year from 2020 to 2023, a mature NJ market implies $43B in Gross Revenue at 100% legalization ($163 Gross Revenue per adult)
Adjusting for GDP Per Capita of NJ vs. that of the U.S., the U.S. opportunity is $40B in Gross Revenue at 100% legalization ($149 Gross Revenue per adult)
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Source: NJ Department of Gaming Enforcement; U.S. Census Bureau; U.S. Bureau of Economic Analysis
Note: U.S. adult population is estimated to be 265 million in 2023. Per U.S. Census Bureau, the U.S. adult population is projected to be 259 million and 279 million in 2020 and 2030, respectively. We estimate the 2023 figure by assuming the U.S. adult population grows on a straight-line basis from 2020 to
2030. All U.S. TAMs are calculated using this 2023E population figure.
(1) Population method applies NJ 2023E gross revenue per adult of $163 for iGaming to the 2023E U.S. population.
(2) Adjusts the U.S. TAM extrapolation for NJ's GDP Per Capita relative to that of the U.S. Specifically, the U.S.'s GDP per Capita is 0.93x NJ's GDP per Capita, implying a gross revenue per adult of $149.
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